Why Axon Enterprise Surged 44.3% in the First Half of 2021

Shares of law enforcement technology company Axon Enterprise (NASDAQ: AXON) were up a smooth 44.3% through the first half of 2021, according to data provided by S&P Global Market Intelligence. The inventor of the TASER continues to diversify its business by moving into software, selling its products internationally, and moving outside of selling to just police departments.

Axon released its Q1 results back in May, which was likely a catalyst for the stock's strong performance over the past two months. Revenue was up 33% during the period, beating management's internal estimates, and a lot of other numbers looked good as well. New product bookings were up 130% year over year, showing that Axon's diversification from solely selling TASER devices is working. Net revenue retention was 119% in the quarter, which shows the strong revenue growth Axon is getting from existing customers. Since Axon sometimes sells contracts lasting five or even 10 years, it has low churn for its hardware and software bundles, making its revenue highly predictable.

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Source Fool.com